MOH explains rationale of Medisave limits for insurance premiums

Policies for working seniors (22 Aug 2012)

I HOPE that policies affecting retired and semi-retired people will be reviewed ("'No sacred cows' in review of policies"; Aug 10). Quite a few of us still work as we have to support aged parents.

As we age, the insurance premium on our Medisave accounts sees a hefty jump but the amount that you can use to offset medical bills is capped at $800 and does not take into account the increased premiums.

I turn 66 in September, and from paying $100, I now have to pay $500 to offset the Medisave amount. I am not asking for any handouts. I have money in my Medisave account, so why force me to pay cash?

My mother is 90 years old and my sister is aged 65, and I have to pay for the medical bills of both of them in cash.

I have downgraded my policy and I will have to downgrade again or give up the policy.

This the plight of many of us. How then can one grow old gracefully?

Francis Chowdhurie

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Offer elderly-friendly Medisave options (24 Aug 2012)

LIKE Mr Francis Chowdhurie, I may downgrade or surrender my insurance policy ("Policies for working seniors"; Wednesday).

I have NTUC Income's Enhanced IncomeShield insurance policy, and according to Central Provident Fund (CPF) regulations, I am allowed to use up to $800 a year from Medisave to pay for the premium. The amount is barely enough, and I have to come up with $604 in cash to pay the total premium of more than $1,400.

I wonder why I should be asked to pay cash when I have an adequate amount in my Medisave account. Shouldn't the $800 cap which has been in existence for quite some time be increased to, say, $1,500 to lighten the financial burden of elderly policyholders?

We have been driving home the message about caring for the elderly and the need for insurance coverage, and I think the least the CPF Board can do is review Medisave regulations and create more elderly-friendly options.

Jeffrey Law

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MR FRANCIS Chowdhurie ("Policies for working seniors"; last Wednesday) and Mr Jeffrey Law ("Offer elderly-friendly Medisave options"; last Friday) asked for the increased use of Medisave for premiums of private integrated Shield plans.

Medisave is a health-care savings scheme to help Singaporeans pay for their basic health-care needs, especially after retirement. In particular, to ensure that Singaporeans have sufficient funds in their Medisave accounts to meet their health-care needs after retirement, some withdrawal safeguards are put in place on Medisave use.

While Singaporeans can use Medisave to pay for insurance premiums, it is subject to withdrawal limits of $800 for policyholders aged 80 and below, and $1,150 for those 81 years old and above. This is more than enough to cover basic MediShield premiums.

However, for those who wish to purchase additional integrated Shield plans offered by private insurers to cover their hospitalisation expenses in private wards or hospitals - whether Class A in the restructured hospitals, or private hospitals, as in the cases of Mr Chowdhurie and Mr Law - they may have to use cash to pay for part of their premiums.

The amount they have to pay in cash will depend on the extent of insurance coverage that they have sought in their private plans.

The Ministry of Health is reviewing the Medisave limits for the payment of premiums in line with changes to premiums over time, and will share more details when ready.

Bey Mui Leng (Ms)

Director
Corporate Communications
Ministry of Health (MOH)